Xcel Seeks Electric Fuel Rate Increase
By Cahalan, Steve
Xcel Energy last week asked the Public Service Commission of Wisconsin for an electric rate increase to cover higher costs this year for natural gas and the power it buys from suppliers.
Xcel estimates a typical residential customer, using 750 kilowatt hours of electricity per month, would see a monthly increase of 1.8 percent, or $1.12. That customer now pays $61.54 per month and would pay $62.66 under the proposal filed Friday.
The commission will hold hearings on the company’s request, but the dates haven’t been set, commission spokeswoman Amanda Riddell said Wednesday.
The commission may grant an interim rate increase, which is subject to refund if the increase finally approved by the commission is less than the interim hike.
The earliest an interim increase could take effect is Nov. 10, Xcel spokesman Brian Elwood said.
The increase would be in the form of a fuel cost adjustment surcharge.
On Sept. 28, the commission gave final approval to a fuel cost adjustment surcharge the company filed for April 22. It took effect Oct. 1. For the typical residential customer, the increase amounted to 2.4 percent, or $1.48 per month, bringing that customer’s monthly electric bill to $61.54.
Xcel filed last week’s request because of continued increases in the cost of natural gas and purchased power, Elwood said. Xcel uses natural gas to make some of its electricity.
“It’s a pass-through to customers,” Elwood said of fuel cost adjustment surcharges. “The company makes no profit off that.”
PUBLIC HEARINGS SET
WHAT: The Public Service Commission will hold public hearings on a request Xcel Energy filed June 1 for an increase in base electric and natural gas rates. Xcel’s amended request is for an increase of $53.1 million annually, or 13.4 percent, in total electric revenue, and an increase of $7.7 million annually, or 4.8 percent, in natural gas revenue, spokesman Brian Elwood said.
WHEN: The video conference hearings will be at 1 and 6 p.m. Nov. 2.
WHERE: At three locations, including Room 102 of the Wing Technology Center at 1725 State St. at the University of Wisconsin- La Crosse.
WHY: Xcel says the proposed increase in base electric rates is primarily driven by the construction and maintenance of generating facilities and transmission lines to meet growing electric needs. It says the proposed increase in base natural gas rates is due to ongoing installation and maintenance of its natural gas distribution system and for environmental cleanup costs at former manufactured gas plant sites. Wisconsin investor-owned utilities file base electric and natural gas rates for two-year periods.
Copyright La Crosse Tribune Oct 20, 2005